Reader’s Question:

I think I am holding too many credit cards and it affects my credit reports in Baltimore, Maryland MD. How will I know if my credit utilization is too high in Maryland?

Betsy

Baltimore, Maryland MD

To know the status of your credit utilization in Baltimore, Maryland MD is too high, you need to divide your total balance due by your total credit.

For an ideal scenario, your credit utilization must be lower by 30% compared to your credit card limits. For example if you have a total credit limit of $10,000.00 and your total balance due is $4,000.00, you’ve generated a 40% total credit utilization.

I think any number more than 2 credit cards is too much. I keep only one in my wallet and only use it during emergencies. This will be less tempting to use as many cards as you want which can get you into a very bad debt in the long run due to abuse.

Having too many cards on your wallet right now, you are most likely prone to temptation to charge and charge every purchase. Always limit the number of your credit cards to a minimum, in order for you to slash down your credit utilization and protect your credit reports in Baltimore, Maryland MD.

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